Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO

question 59

Multiple Choice

Accounting procedures allow a business to evaluate their inventory at LIFO (Last In First Out) or
FIFO (First In First Out) . A manufacturer evaluated its finished goods inventory (in $1000) for five
Products both ways. Based on the following results, is LIFO more effective in keeping the value of
His inventory lower?
What is the alternate hypothesis?

• A) µF = µL, or µd = 0
• B) µF ≠ µL, or µd ≠ 0
• C) µF ≤ µL
• D) µF > µL

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Definitions:

Age

The length of time that a person or object has existed, typically measured in years.

Feedback

Data on responses to a product or an individual's task execution, utilized as grounds for enhancement.

Negative

Characterized by the absence rather than the presence of a certain quality, or expressing or containing a denial or refusal.

Positive

Defined by having certain features or qualities, rather than lacking them.